Daily strategy 30-11-09 - Sterling to remain under pressure

01 December 2009 @ 04:41 am EDT

There will continue to be major concerns over the underlying UK government debt position. The risks to Sterling will intensify if there is a wider loss of confidence in the international financial sector as this would expose the UK banking sector to a renewed loss of confidence and fears that further UK government support will be required. Sterling will gain some relief if global risk appetite stabilises, but rallies will soon attract selling pressure. Near-term, look to sell at 1.65 against the dollar.

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